Company Number: 15250585

Analysis Date: 2025-07-20 15:56 UTC

1. Risk Rating: HIGH
   The company shows significant solvency concerns due to negative net assets and a large creditor balance exceeding fixed assets. The financial snapshot indicates potential financial distress despite being newly incorporated.

2. Key Concerns:

   • Negative Net Assets and Shareholders' Funds: The company reports net liabilities of £1,433, indicating that total liabilities exceed assets which is a red flag for solvency.
   • Long-term Creditors Exceed Fixed Assets: Creditors due after more than one year stand at £240,618, surpassing fixed assets of £239,944, suggesting potential over-leverage or reliance on debt beyond asset backing.
   • Limited Operating History and Minimal Current Assets: Incorporated in late 2023 and with only one employee, the company has limited operating track record and current assets are minimal (£5,021), raising liquidity concerns.

3. Positive Indicators:

   • No Overdue Filings: The company’s accounts and confirmation statements are up to date, suggesting compliance with statutory filing requirements.
   • Clear Director and PSC Structure: Directors and persons with significant control are identified, without any indications of disqualification or governance issues.
   • Micro-entity Reporting Exemption: Utilization of micro-entity accounting simplifies reporting and may reduce administrative burden.

4. Due Diligence Notes:

   • Investigate the nature and terms of the long-term creditors (£240,618) including repayment schedules and security arrangements.
   • Clarify the business model and financial projections given the minimal current assets and negative net equity position.
   • Review cash flow forecasts and working capital management to assess short-term liquidity risk.
   • Assess the background and financial strength of directors and PSCs for potential financial support or guarantees.
   • Confirm whether there are any contingent liabilities or related party transactions not reflected in the accounts.